Pharmaceutical firms set to compete

Pharmaceutical firms set to compete

DIRECTOR GENERAL OF FOOD AND DRUG SUPERVISION DR. H. SAMPOERNO, MBA

The Directorate General of Food and Drug Supervision (DITJEN POM) is invested with a mission to protect the health of the general public and enhance the quality and image of medicine/pharmaceutical, food and cosmetic industries.

The Ministry of Health's Director General of Food and Drug Supervision Dr. H. Sampoerno said: "Previously, this mission was not touched upon by POM, but now I am more focused."

He acknowledged that the economic crisis hitting Indonesia has had a negative effect on the pharmaceutical industry. It is particularly felt here because materials used in the pharmaceutical industry are imported. Consequently, prices have risen. This has affected the ability of consumers to purchase pharmaceuticals, with 80 million Indonesians now classified as poor or living below the poverty line.

"It is the task of the government to rescue them," Sampoerno said.

This can be done, he said, with the provision of subsidies to them through the distribution of generic drugs, primarily through public health services and pharmacies.

To meet this challenge, the government, through POM, is making several endeavors, including:

* Seeking payment sources. For instance, the International Development Bank will soon provide US$100 million. This loan is in the form of profit-sharing, and POM will extend loans to pharmaceutical companies which are healthy and have good prospects.

* POM will provide prime services, such as through transparent services and through full-export ventures.

Considering the standard and competitiveness of Indonesian- produced pharmaceuticals, Sampoerno believed there are no other problems.

"Our medicines conform to international standards," he said.

Indonesia's pharmaceutical firms are also required to step up their competitiveness for the advent of free trade. The means is through optimizing the resources the country possesses; Indonesia must have products which are suitable domestically, regionally and globally in order that they can be marketed overseas. "That is our fundamental idea now," asserted Sampoerno.

In commenting on the readiness of local companies for the dawning of a free market, Sampoerno acknowledged there were firms which retained an orientation to the local or national markets. However, many firms have made special preparations to compete in the free market.

POM, in addition to providing development assistance, is facilitating activities, including providing business permits to sound firms. "And what is important is that previously, the private sector was an object. Now we have made it a partner."

In this regard, the government has advised the national pharmaceutical industry to set high product and quality standards; possess a marketing strategy which is both locally and globally oriented; create professional human resources; and utilize domestic resources.

"If they don't, they will run into problems," Sampoerno added.

The government is also striving to create regulations and deregulation for a conducive business climate, particularly in improving the efficiency and ease of services and funding, in addition to improving access to market information, both on a national and global scale.

Sampoerno said people are starting to opt for generic drugs. "And that is not a problem because generic drugs available now can treat 80 percent of the medical conditions found in Indonesia."